vsharma.vinita Started The Discussion: Hi friends, Please let me know that How to calculate basic salary ? Nidhi Jain  Contributing Member
hi ashutosh, calculation of basic salary varies from company to company, like i am working in group where in one unit basic is calculated as 60 % of gross while in other unit there is formula mentioned below: HRA  25 % OF BASIC LTA  8.33 % MEDICAL  8.33 % PF  12 % GRATUITY  4.81 % BONUS  8.33 % FIRST WE SUM UP ALL THE AFORESAID PERCENT, HERE IT IS (66.8 %) FORMULA (BASIC SALARY) = GROSS SALARY * 100 / 166.8 THIS IS HOW IT VARIES FROM ORGANISATION TO ORGANISATION. REGS, NIDHI Nidhi Jain  Contributing Member
hi ashutosh, calculation of basic salary varies from company to company, like i am working in group where in one unit basic is calculated as 60 % of gross while in other unit there is formula mentioned below: HRA  25 % OF BASIC LTA  8.33 % MEDICAL  8.33 % PF  12 % GRATUITY  4.81 % BONUS  8.33 % FIRST WE SUM UP ALL THE AFORESAID PERCENT, HERE IT IS (66.8 %) FORMULA (BASIC SALARY) = GROSS SALARY * 100 / 166.8 THIS IS HOW IT VARIES FROM ORGANISATION TO ORGANISATION. REGS, NIDHI vishwagayathri  Contributing Member
There is another way to calculate the Basic salary too As rightly said, there is n't any hard and fast rules for calculating the basic pay. The current scenario is If the Basic pay is less than Rs 3500, the employer has to pay the minimum Statutory bonus ranging from 8.33%. Hence the employer makes the minimum basic of Rs 3600 and above. With effect from new parliamentry note of Basic revision to Rs 10000 towards Statutory bonus is still to be worked out. However here are the few tips: 1. Basic Salary would depends on the designation level of the person. 2. Basic is usually fixed depending on the CTC (cost to the company). This can range from 20 to 60%. 3. Advisable to have optimum level to basic salary and get this standardized across the grades / levels for operational convinience & PF remittence which will affect employee's take home 4. Once the basic pay is fixed we can fix the other components with the required percentages (HRA, Other allowance, Medical, LTA, Reimbursemnts, etc isaacpattu1982  Contributing Member
Dear Sharma Vinitha, The salary structure will go as follows: Basic Salary: 30 %  50% of the CTC (Cost to Company) HRA: 50% of Basic Dearness Allowance: Most Company Will not have this parameter This (D.A) will be alloted by the Government D.A is fully taxable Transport Allowance: Upto 8000/month is not taxable Telephone Charges: Fully Taxable Deputation Allowance: Completely Taxable Annual Medial reimbursement: Rs.15,000/ Gross Salary + Statuory like PF = CTC Gross  Deductions = Take Home Hope this will help you Best Regards Isaac Patturaja Found This Useful? +Vote Up This Page Via Google. Why Vote? User validation is extremely important for good content to prosper. Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.  Explore Topical Knowledge Areas Topic Categories >> basic pay basic salary cost to company LocationIndiaGurgaon salary structure Complete List Of Categories Interesting Relevant Discussions DISCUSSSION STATISTICS 4807 VIEWS 6 REPLIES 
